Bengaluru, May 4 (SocialNews.XYZ) Upbeat over the surge in sales on the first day of liquor shops reopening after 40 days of lockdown, prices of all brands would cost more in Karnataka when new stocks arrive, state Excise Minister H. Nagesh said on Monday.
"All liquor brands will cost more from next week when new stocks arrive for sales, as the 6 per cent increase in additional excise duty (AED) will be added to their maximum retail price," Nagesh told reporters here, even as thousands of tipplers thronged hundreds of wine shops across the southern state for a bottle of beer, whisky, brandy or gin.
Though the 6 per cent hike in AED proposed in the state budget for this fiscal (2020-21) was to be effective since April 1, the state Excise Department could not enforce it, as old stocks remained unsold due to the lockdown since March 25, which also forced liquor shops remain shut along with pubs, bars, hotels and restaurants across the state.
"We hope to exhaust old stocks by this weekend, as there is no limit to buying any quantity of liquor from retail outlets or wholesale shops in all zones except in hotspots or containment areas for consumption at home and in view of the soaring demand after 40 dry days," Nagesh said.
Admitting that the state lost about Rs 3,000 crore worth excise duty in the last 40 days due to the lockdown, he said 50 per cent of this would be recovered from the 6 per cent increase in AED and spurt in sales through the year.
"We expect to earn over Rs 3,000 crore due to hike in excise duty and more sales when pubs, bars, restaurants and hotels reopen for business across the state after the extended lockdown is lifted soon," he said.
According to the state Excise Department, a record quantity of liquor valued at Rs 45 crore was sold on the first day of reopening of sales across the state.
"As per the tentative figures we received from across the state, around 3.9 lakh litres of beer and 8.5 lakh litres of the Indian-made liquor (IML) were sold, netting Rs 45 crore when the liquor shops were shut by 7 p.m., as per the new guidelines," an excise official told IANS here.
As part of easing lockdown restricts, liquor shops reopened across the state, including red zones but not in hotspots, declared as coronavirus containment zones.
Containment areas have been earmarked in red zones like Bengaluru where Covid positive cases have been more than 15 in the last 14 days.
The licensed shops, however, will remain open for business from 9 a.m. to 7 p.m. daily till May 17 and not allow more than 5 customers inside it at a time to maintain social distancing.
Source: IANS
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